DOW JONES NEWSWIRES
Energy Transfer Partners LP's (ETP) fourth-quarter profit fell
8.9% as mild winter weather dragged on the natural-gas pipeline
operator's propane sales, while the owner of its general partner,
Energy Transfer Equity LP (ETE), reported 13% higher earnings.
Like many of its peers, Energy Transfer Partners has generally
reported improving results in recent quarters, though adjustments
reflecting nonhedged derivatives hurt its bottom line earlier in
the year.
Results suffered in the latest quarter, however, as mild winter
weather across the U.S. hurt sales in the company's propane
business.
The limited partnership in October agreed to sell its propane
operations to AmeriGas Partners LP (APU) for $2.8 billion, part of
an effort to devote more resources to its pipelines business.
Energy Transfer Equity is putting all its chips into natural-gas
pipelines as a growing supply glut prompts producers to look for
more ways to ship the fuel to far flung markets.
Energy Transfer Equity recently beat Williams Cos. (WMB) in a
bidding war for natural-gas pipeline giant Southern Union Co. (SUG)
in a $5.7 billion deal expected to close soon.
Energy Transfer Partners reported a profit of $206.8 million,
down from $226.9 million a year earlier. On a limited-partner
basis, the profit was $91.9 million, or 41 cents a unit, down from
$126.8 million, or 65 cents a unit, a year earlier.
Revenue jumped 25% to $1.82 billion.
Analysts polled by Thomson Reuters expected a 68-cent per-unit
profit on $2.11 billion in revenue.
Energy Transfer Equity reported a $85.8 million profit, up from
$76.1 million. On a limited partner basis, the company earned 38
cents a share, up from 34 cents a year ago, as revenue 23% to $2.18
billion.
Energy Transfer Equity shares closed at $41.88 Wednesday and
were unchanged after hours. Energy Transfer Partners ended the
session at $48.27 and its shares were down 2.1% after hours.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com